Bullion refers to the metal in its purest form. It is at least 99.5% pure and is in the form of bars, ingots, and coins. When you buy bullion, you get the actual value of the metal.
The value is generated through a universally recognized pricing mechanism known as “spot price,” which you can check anytime to find out the actual value of the metal. Bullion can be made of any precious metal, gold, silver, platinum, palladium, etc.
Gold bullion is one of the popular options for investors around the world. Gold provides them a sense of stability, security and offers excellent returns on their money. It fares better than most of the currencies and has been in history for more than 3000 years. It is a limited metal and will not lose its value.
The common forms of gold bullion online are gold bars and gold coins. The price you pay for the gold bullion is the recognized weight and the finesses of the gold. Both the forms are tradable and practical forms of gold.
Types of Gold Bullion You Can Buy Online
Gold Bars or Ingots
Gold bars are the most effective and convenient way of buying and storing gold in bulk amounts. Private mints commonly produce them for the bullion markets. However, you may even find a few government mints producing bullion bars.
Bars are usually smaller than the ingots and are produced by stamping and minting. On the other hand, ingots are made using large casts. Manufacturing gold bullion bars is very simple as the mints charge relatively less than they charge for the bullion coins.
Investors prefer bars as they save on premiums over spot prices. As manufacturing gold bars is cheaper, the larger the gold bar, the less premium it is.
Also, it is easier to stack and store bullion bars than coins. But as they are large pieces of gold, they are difficult to melt and reshape and may involve additional handling costs when you want to resell them.
Gold Rounds or Coins
Gold rounds, also known as”gold coins,” are preferred by first-time bullion buyers and small investors. Individuals of any purchasing power can purchase them. So, even if you can’t buy a bar of 50 grams, you can still go for 1-1.25 grams of gold coin. However, their price is more than the spot price for gold.
Beautifully made in different designs, gold coins have a visual appeal. Many people like to give these coins as gifts and put them on show in their display areas. Over time, gold coins featuring themed or commemorative designs gain a collectible value.
One of the biggest positives of gold coins is that they are available in various denominations ranging from .5 g to 100g. Gold coins may be bulky to store due to the certifications and mint cases. But they are highly liquid and can be easily sold.
How to Buy Gold Bullion Online
Investing in gold bullion is less risky and a great way to hedge against inflation and geopolitical factors. There are numerous bullion dealers and traders to buy gold bullion online. But make sure you do your study and look for competitive commission and premium rates. Going through the list of satisfied, genuine buyers will help you choose a reliable vendor.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.